Real sector investments (eg property) generally require a large capital and takes a relatively long time to develop because the amount of capital liquidity is not as fast as the financial sector.
Take for instance when we buy a house for investment. The surplus value normally never decreases and is always increasing. But on the other hand, after a few years, you want to withdraw your investment, then you need to find someone who has sufficient funds to buy your home value may have gone up to tens to hundreds of percent. Finding such a buyer is not easy, this is where the liquidity problems occur.
Another case with the financial sector. Investment in this sector have a tendency to more liquid and return the relatively greater, in proportion to the risk. Another plus is the number of investment products offered in this sector.
Then where the position of Forex Trading? In the Money Market & Commodity Futures Exchange. Forex trading is an investment in the financial sector is considered the most high risk-high return investment. That is, the opportunity to earn huge profits can even reach hundreds of percent per month, but is balanced with the possibility of large losses if not managed properly.
You need to understand the concept of high risk-high return here. Basically, all types of investments are likely to lose. The amount of potential losses will be proportional to the size of the potential benefits we can get here. The greater the potential benefits that can be obtained here, the greater the potential losses also can occur, and vice versa.
If you are classified as safe investors who do not like risk or 'shocks' in your investment portfolio, it seems kind of forex trading is not a suitable investment for you. This is because forex trading is an investment that has a very rapid movement in liquidity and in price movements. Logically, forex trading can only take you a profit of tens to hundreds of percent in one day, but also can bring you lose the same amount.
If you are a risk taker, then the forex trading is the type of investments that suit you, in the sense that for a large profit, so he was ready to bear the potential losses as much.
So is there any way to minimize potential losses there? Of course there is! Risk management and analysis capabilities is the key here. The better you in carrying out risk management and analysis of market price movements, the smaller the potential loss that can occur. Everything is proportional.
Take for instance when we buy a house for investment. The surplus value normally never decreases and is always increasing. But on the other hand, after a few years, you want to withdraw your investment, then you need to find someone who has sufficient funds to buy your home value may have gone up to tens to hundreds of percent. Finding such a buyer is not easy, this is where the liquidity problems occur.
Another case with the financial sector. Investment in this sector have a tendency to more liquid and return the relatively greater, in proportion to the risk. Another plus is the number of investment products offered in this sector.
Then where the position of Forex Trading? In the Money Market & Commodity Futures Exchange. Forex trading is an investment in the financial sector is considered the most high risk-high return investment. That is, the opportunity to earn huge profits can even reach hundreds of percent per month, but is balanced with the possibility of large losses if not managed properly.
You need to understand the concept of high risk-high return here. Basically, all types of investments are likely to lose. The amount of potential losses will be proportional to the size of the potential benefits we can get here. The greater the potential benefits that can be obtained here, the greater the potential losses also can occur, and vice versa.
If you are classified as safe investors who do not like risk or 'shocks' in your investment portfolio, it seems kind of forex trading is not a suitable investment for you. This is because forex trading is an investment that has a very rapid movement in liquidity and in price movements. Logically, forex trading can only take you a profit of tens to hundreds of percent in one day, but also can bring you lose the same amount.
If you are a risk taker, then the forex trading is the type of investments that suit you, in the sense that for a large profit, so he was ready to bear the potential losses as much.
So is there any way to minimize potential losses there? Of course there is! Risk management and analysis capabilities is the key here. The better you in carrying out risk management and analysis of market price movements, the smaller the potential loss that can occur. Everything is proportional.
